This article is part of a larger series on Business Financing.
The best working capital loans will give your company cash that can be used to cover a variety of daily expenses, such as payroll, rent, or other operational costs. They will also provide you with a combination of characteristics, such as low rates, low fees, a wide range of loan amounts, a fast application process, or a flexible repayment schedule.
Not all lenders offer a specific loan for working capital, as many different loan types serve the same purpose. This can include lines of credit, term loans, invoice financing, and merchant cash advances. The providers on our list offer at least one of these products and allow for the funds to be used for working capital.
Here is a list of the eight best working capital providers:
- Bluevine: Best overall line of credit for low rates
- Fundbox: Best line of credit for fast approvals
- Funding Circle: Best for long repayment terms
- SBG Funding: Best for businesses with low credit scores
- Lendio: Best for multiple loan options
- Kabbage Funding: Best line of credit for businesses with low revenue
- OnDeck: Best for quick access to cash
- Fora Financial: Best for merchant cash advances (MCAs)
Best Working Capital Loans at a Glance
Maximum Loan Amount
Maximum Loan Term
Minimum Credit Score
6.2% to 78%
10% to 79%
8.75% and up
21% and up
10% and up
560, but varies based on loan type
24% and up
29.9% and up
35% and up
Bluevine: Best Overall Line of Credit for Low Rates
Why We Like Bluevine
Bluevine is our choice as the best overall provider because it offers rates as low as 6.2%. In addition, it has a quick application process and can fund small and large loan amounts.
Applications can be completed in several minutes, and you can receive a decision in as little as five minutes. If approved, you can receive funding within 24 hours. To be eligible for a line of credit, you can qualify with 24 months’ time in business and a credit score of 625. You will also need $40,000 in monthly revenue, which is the highest out of all the providers in our guide.
The advertised rate as low as 6.2% is calculated as a simple interest rate from total payments made over 26 weeks. The rate you qualify for can also vary depending on your company’s qualifications and loan terms you’re seeking, so it’s possible that your APR could be as high as 78%.
Getting a line of credit with Bluevine means you won’t have to pay setup, termination, and subscription fees. There are also no long-term contracts, so you can always cancel the loan if you decide it is no longer a good fit for you.
Before applying, ensure that you are in a state and industry eligible for financing. Most states are eligible, with the exception of North Dakota, South Dakota, and Nevada. The company also lists ineligible industries on its website, some of which include companies involved in gambling, firearms, and illegal substances.
To learn more or to apply, you can visit the Bluevine website.
Fundbox: Best Line of Credit for Fast Approvals
Why We Like Fundbox
With the ability to issue funds within 24 hours of applying for a loan, Fundbox is our choice as the best line of credit for fast approvals. While other providers may also offer quick funding, Fundbox offers low rates and easy qualification requirements, a combination that also earned it a spot in our guide to the best easy business loans.
When you apply, you can receive a decision on your application within 3 minutes. If you are approved for a loan, you can also receive funds as fast as the next business day. Rates as low as 4.66% are available with the option to repay weekly over 12 or 24 weeks. The maximum credit limit offered is currently $150,000, which is one of the lowest on our list of providers.
As with most providers, the rate you receive will depend on the loan term and your company’s qualifications. Fundbox requires a minimum credit score of 600 and $100,000 in annual revenue but exceeding those minimums can give you a better chance of qualifying for a lower rate. The provider also tends to charge higher rates for the 24-week repayment terms. APRs can range from 10% to 79%.
A potential downside to Fundbox is the fact that you will be limited to weekly repayment options. Other providers offer more flexibility with daily, biweekly, or monthly terms. However, the company is currently running a test program called Fundbox Plus, which could be expanded in the future. The program isn’t available to all customers, but those selected have the option to pay a monthly fee of $99 to receive a number of benefits, including the option to make payments every four weeks, 52-week repayment plans, and discounted fees on draws.
You can start the application process on the Fundbox website or call the provider’s toll-free number to learn more.
Funding Circle: Best for Long Repayment Terms
Why We Like Funding Circle
Funding Circle is a good choice if you’re looking for the flexibility to repay the loan over a longer period. Monthly repayment terms of up to seven years are available, which is more than many of the other providers in this guide.
To qualify for a term loan, you’ll need to have good credit. Funding Circle requires a minimum credit score of 660, which is the highest out of all the providers listed here. It also requires a minimum of two years’ time in business.
Businesses that meet the requirements can qualify for loans from $25,000 to $500,000. There are no prepayment penalties, although there is an origination fee that may be charged. This amount is determined only after you submit an application, and typically ranges between 0.5% and 3% of the loan amount.
Applying takes 6 minutes, with approval and funding occurring within 24 to 48 hours. The provider states that most loans fund within three to five business days from when the initial application is submitted.
Funding Circle does require a lien to be placed on your business assets, along with a personal guaranty from business owners who own 20% or more of the company. Business assets can include equipment, vehicles, and inventory. It doesn’t accept real estate liens.
If you don’t want a lien to be placed on your assets, then you can consider some of the best unsecured business loans.
You can head over to the Funding Circle website to submit an application.
SBG Funding: Best for Businesses With Low Credit Scores
Why We Like SBG Funding
SBG Funding offers different types of loans that can be used for working capital, including term loans, lines of credit, and invoice financing. Each of these requires a minimum credit score of 500, making it a good provider for business owners who have bad credit.
Other requirements include six months’ time in business and $10,000 in monthly revenue. Applications can be completed online in under 10 minutes, with decisions made within 24 hours. If approved, funding can occur on the same day.
Its term loans, lines of credit, and invoice financing each have different rates, repayment terms, and loan amounts. With several loan options that can be used for working capital, you should consider which one has the best terms for your intended use.
Submitting an application won’t hurt your credit score, so if you’re unsure where to start, you can submit an application to work with one of its team members to determine the best type of loan for your business needs. SBG Funding boasts a high approval rate of 85%, so there is a good chance that it can give you some options for working capital.
To apply, you can visit the SBG Funding website.
Lendio: Best for Multiple Loan Options
Why We Like Lendio
If you want to have multiple loan options with a single application, Lendio is a good choice. It has a network of more than 75 lenders, which can also improve your chances of getting approved. Its large network gives you plenty of options for loans that can be used for working capital including term loans, short-term loans, lines of credit, and invoice financing. Each has its own features and qualification requirements, which we have listed in the table above.
Due to the nature of some of the loan types, some items may not be applicable. For example, invoice financing has no specified minimum credit score because it’s more dependent on the credit of the company that needs to pay you.
While specific qualification requirements may vary depending on the type of loan you’re looking for, you can typically find something you’re eligible for with at least six months’ time in business, $50,000 in annual revenue, and a credit score of 560.
One possible downside is that funding may not be the quickest, depending on the type of loan you want to get. Invoice financing can be done as quickly as 24 hours, but a line of credit could take up to two weeks. The application process, however, is quick and takes under 15 minutes.
To learn more about your options, you can check the Lendio website to submit an application or speak with a team member.
Kabbage Funding: Best for Businesses With Low Revenue
Why We Like Kabbage Funding
Kabbage Funding is an excellent choice for businesses that have low monthly revenue. With a minimum requirement of $3,000 per month, this lender has one of the lowest requirements on this list of providers.
It offers a line of credit with a maximum credit limit of $150,000. Rates are in the form of a monthly fee, detailed in our table above, and depend on your business qualifications and loan term. You can get a credit limit up to $150,000. To get approved, you’ll also need to have at least 12 months’ time in business and a credit score of 640 or higher.
One downside with this provider is that getting access to cash isn’t as quick as the other lenders in this guide. While the application process can be done in around 10 minutes, approval and funding can take a total of up to one week. Additionally, once you’re approved, it could take between one and three days to get access to your funds once you’ve decided to draw from the line of credit.
To apply or learn more about how you can use the line of credit for working capital, visit the Kabbage Funding website.
OnDeck: Best for Quick Access to Cash
Why We Like OnDeck
While some line of credit providers require you to wait several hours or more to get cash once you’ve decided to draw funds, OnDeck makes that occur instantly. This makes it our pick as the best working capital loan provider for quick access to funds. It is also one of our best same-day business loans as it offers funding within one business day.
Once you are approved, instant access to funds on the line of credit product is available 24/7 throughout the year. APRs start as low as 29.9% and require you to have a minimum credit score of 625, 12 months’ time in business and $100,000 in annual revenue. You can apply for a credit limit as high as $100,000 with weekly repayments over a maximum of 12 months.
The provider also offers a term loan with up to $250,000 in financing available. While the term loan does not have the flexibility to draw funds on an as-needed basis, your repayment options are expanded to include daily repayments over a period of up to two years.
Head over to the OnDeck website to start the application process for either the term loan or line of credit.
Fora Financial: Best for Merchant Cash Advances
Why We Like Fora Financial
If you’re looking for a merchant cash advance, Fora Financial is a good choice to consider. It offers up to $1.4 million in working capital with easy qualification requirements.
To get approved, you’ll need a credit score of 500, six months’ time in business, and $12,000 in monthly revenue. Applications can be submitted online in a few minutes, with decisions and funding occurring within 24 to 48 hours. You can apply for as little as $5,000 or as much as $1.4 million in funding.
This provider offers a lot of flexibility in repayment schedules, which includes the option to make payments daily, weekly, or monthly. Repayment terms will vary based on the volume of your credit card sales. Its small business term loans must be repaid within 15 months.
Fora Financial’s financing options also include prepayment discounts and the ability to increase the amount borrowed after paying 60% of the original loan. This can save you time and money from having to reapply for more financing at a later date.
To learn more, visit the Fora Financial website.
How We Chose the Best Working Capital Providers
Here are the criteria we used in selecting the best working capital loan providers:
- Interest rates, fees, and estimated APRs
- Application and funding speed
- Types of loans offered
- Time in business, revenue, and credit score requirements
- Loan amounts
- Loan terms and length of repayment
- Customer reviews
Alternatives To Working Capital Loans
Working capital loans are a good source of funding to cover your daily expenses. However, it can be difficult for some businesses to qualify especially as a brand new company. Here are some alternative funding options you can consider if your business is unable to get a working capital loan:
- Startup business loans: These loans cater toward newer businesses and have more flexible requirements for things like time in business and revenue. Rather, some rely on the value of an asset to secure a loan, such as equipment financing. Other types of funding options, such as a rollover for business startup (ROBS) have no requirements for collateral or credit scores.
- Personal loan for business purposes: This option focuses more on your personal credit and income rather than your business. It’s possible to get up to $100,000 or more in funding, but you’ll be personally liable for repaying the loan if your business is unable to do so.
- Loans from friends and family: Funding from these sources can come in different forms, including term loans, lines of credit, equity, and gifts. One advantage here is that these loans can be less expensive compared to banks and other lenders.
Types of Working Capital Loans
Working capital loans come in several forms, but the one thing they have in common is that they allow you to use funds to cover many types of everyday operational expenses. Here are some loans that are commonly used for working capital:
- Term loan: These loans give you a lump sum of cash with a fixed period of repayment between six months and 10 or more years. It’s a good option if you know exactly how much cash you need and do not anticipate frequently needing to apply for more funds.
- Small business line of credit: A line of credit gives you the flexibility of continuously drawing funds on an as-needed basis up to its credit limit. It can give you quick access to cash to cover emergencies or unexpected cash flow shortages.
- Invoice financing: This type of funding allows you to get cash more quickly if you have customers with invoices who have not yet paid you.
- MCA: An MCA allows you to get a lump sum of cash in exchange for a percentage of credit card sales. Although expensive, this can be useful for companies that have a high volume of credit card transactions and cannot qualify for other types of financing.
- Revenue-based financing: With this type of loan, your monthly payments fluctuate based on your company’s revenue. This is a good option if your business has predictable sources of revenue and cannot qualify for loans that require collateral.
Frequently Asked Questions (FAQs)
How quickly can I get a working capital loan?
You can get a working capital loan within 24 to 48 hours. However, this will depend on the lender and type of loan so it’s possible that it could take up to two weeks or more. If you need to get a loan quickly, you can review our list of the best fast business loans.
Can I get a working capital loan with bad credit?
You can get a working capital loan with credit scores as low as 500, and you can use our guide on the best business loans for bad credit. Depending on the type of loan you’re getting, a credit score may not even be required. For example, invoice financing does not typically have a credit score requirement as repayment of the loan is more dependent on the credit of the companies that owe you the outstanding invoice amounts.
Where can I get a working capital loan?
You can get a working capital loan from credit unions, banks, online lenders, or loan brokers. Since working capital loans are used to cover many types of daily operational expenses, they can include term loans, lines of credit, invoice financing, and purchase order (PO) financing.
Working capital loans will help you cover a variety of operational expenses. Depending on your company’s needs and goals, the providers on our list give you a variety of options to choose from, including term loans, lines of credit, invoice financing, and more. They also have a combination of features, such as low rates, low fees, flexible repayment terms, and excellent customer service.